Normes d’encadrement

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South African King IV Report on Corporate Governance

Ivan Tchotourian 27 août 2018 Ivan Tchotourian

Bonjour à toutes et à tous, Vanessa van Coppenhagen et Shivani Naidoo proposent un bilan du Code de gouvernance sud-africain : « The South African King IV Report on Corporate Governance: themes and variations » (janvier 2017).

On 1 November 2016, the South African King IV Report on Corporate Governance (“King IV”) was published by the Institute of Directors in Southern Africa. Professor Mervyn King emphasises that “the overarching objective of King IV is to make corporate governance more accessible and relevant to a wider range of organisations, and to be the catalyst for a shift from a compliance-based mindset to one that sees corporate governance as a lever for value creation”. This article highlights a few significant themes, variations and developments adopted by King IV, specifically inclusivity, outcomes-based focus (apply and explain), integrated thinking and transparency/increased disclosure.

 

Extrait :

Inclusivity

One of King IV’s objectives is to broaden its acceptance by making it accessible and fit for implementation across a variety of sectors and organisational types. King IV contains sector supplements in respect of municipalities, non-profit organisations, retirement funds, small and medium enterprises and state-owned organisations, which provide direction and guidance on how to apply the principles and recommended practices in these sectors and organisational types.

As is the case in King III, King IV adopts a stakeholder-inclusive approach, meaning that the governing body should take into consideration the “legitimate and reasonable needs, interests and expectations of all material stakeholders in the execution of its duties in the best interests of the organisation over time”. Stakeholders include shareholders, employees, consumers, the community and the environment. Under this approach, the interests of shareholders and funders, and the interests of other sources of value creation (including social and relationship capital), should be given equal status and should be balanced over time, responding to current circumstances, but always in the best interests of the company in the longer term.

Integrated thinking

King IV has further developed the principles of integrated thinking and integrated reporting seen in King III. Through integrated thinking, an organisation should “take into account the connectivity and interdependence between a range of factors that affect an organisation’s ability to create value over time”. One of King IV’s objectives is to reinforce corporate governance as a holistic and interrelated set of arrangements to be understood and implemented in an integrated way. Integrated thinking underpins:

  • the stakeholder inclusive approach, in that the interests of shareholders and stakeholders are interdependent;
  • recognition that the organisation and society are interdependent, in that the organisation is a provider/developer of wealth, goods, services, employment and intellectual capital and society provides an operating environment, consumer base and skills;
  • recognition that the organisation is a corporate citizen, having responsibilities to its own workplace, the economy, society and the environment; and
  • sustainable development, in that the organisation operates in the context of the economy, society and the natural environment and present needs should not compromise the needs of future generations.

Integrated reporting is an outcome of integrated thinking.

 

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